Anyone Can Turn $1,000 Into $45,000 Doing This…

welcome back to the Rich Dad radio show

where we're talking about the good news

and the bad news about flipping real

estate I'm your host Brent Daniels and

we know here that the deal of a lifetime

comes around about once a week so let's

go find it Today's Show is absolutely

incredible I've got Mark stubler and

Cody hoffine from Joe home buer they've

been in business for over 10 years they

do a hundred deals a year and they're

going to show you how to go out and find

deals that nobody else knows about using

a interesting marketing technique so

strap in get ready and here we go

welcome Cody hoffine and Mark stubler

with Joe home buyer how are you guys aw

be here man it's always good to see your

energy fill your energy and we're

excited to be

here hey any chance I can hang out with

you Brent just sign me up I'm a part of

that so I appreciate you having us on

brother well good well let's Dive Right

In Cody when did you get into real

estate oh when I failed at Insurance my

friend is what is the short answer but

um 2015 so 2015 was is probably

different time well definitely different

times than

2024 however it's probably the same

story as many of those that are

listening can can probably relate to and

that is 2015 I'm five years into

Insurance like just selling home and

auto policies and I come home early from

work and I wanted to surprise my wife

but instead she surprises me because

she's at the dinner table crying and

she's wondering do we put food on the

table to feed our kids or and not in

this like hate towards World anything

like that she was just she was just

feeling it she's like this is stressful

or do we put food towards the mortgage I

mean that was a reality I had to hit um

the money mortgage not the food yeah not

the food sorry if I said food Wards the

mortgage that they they don't take that

anymore that's a that's a form of

payment they don't do anymore um back in

2015 they did no just kidding uh but yes

it was it was it was that it one or the

other we were still having some rough

months and uh two days later I go to a

local real estate investor Association I

only guys I went there for five years

Brent five years and I could care less

to have listened to real estate I was

going there for one purpose like I'm a

one-track guy was just to listen who has

rentals so I can go up to him and say

hey I've got an insurance product for

you like that will that will save you

money and that's all I heard for 5 years

and everyone was talking about

wholesaling rentals flips all this stuff

real estate and I was just like in one

ear and one out the other um but I went

with a different set of ears that time

so in 2015 I go two days later after

seeing my wife cry and it was perfect

timing because I go in there and this

guy stands up and he says I found this

deal where I put the home under contract

and I wholes sold it and I made $29,000

and I did it in three days and I'm like

what like what is this new magic trick

that that that you're talking about and

so I went up and talked to him and got

enough knowledge and and understanding

and and it pointed me to go find and

search out a mentor and I did that and

39 days later I did my first deal that

paid me $24,000 and it was like game

over at that point so that's kind of the

the starting point 2015 and that was why

I got into it how did you find that

first

deal so that was direct mail um of all

things so it was it was hiring like I

said this mentor and um he just kind of

showed me list like get your hands on

these lists and at that time it wasn't I

think it's more automated now and

there's definitely some service

providers out there that get you a lot

easier I had to physically go down to

the the state buildings like the cour

houses and pull some of these lists and

maybe that's what made it uniquely hot

back then too like it was just you had

to go out and you had to like put your

your sweat into it to find these lists

and sometimes these State off Office

Buildings um they would be like no that

list doesn't exist and I get back on the

phone with the mentor and I'm like hey

they say this list doesn't exist like no

it exists you go in there and you find

out if they like a Diet Coke whatever it

is like that list exists they have it so

I'd go in there and then I just over

time they're like this idiot keeps

coming back because I wouldn't give up I

did trust the process I'm not someone

that gives up easy but it was like man I

had to go into some of these cour houses

three or four or five times or state

departments and go in there three or

four times before the like oh yeah we

have that list I'm like isn't that the

same thing I just said like four times

ago and anyways uh yeah that's how I got

my hands on my first list and it's just

like uh uh there was probate list there

was tax delinquent list there was all

these different lists that you could

pull and I just started motivated seller

lists yes yes anything showed like a

distressed home or distressed

seller got it yeah these are what you

want to Target as a real estate investor

if you're looking for off-market

opportunities these aren't sellers that

have put it on the market with the real

estate state agent and everybody sees it

these are before they go and put it on

the market or often times what we have

found and and you guys can speak to this

as well is a lot of lot of people don't

want to list with a real estate agent

they don't want to put it on the market

they just want speed and convenience and

they just want to have a private sale

with a real estate investor that's going

to come and give them a cash as his

offer they don't want to put any more

money into the property nor oftentimes

they don't have the money to put into

these properties properties and so they

just want to uh get rid of this property

as soon as possible and that's where we

come in and so that's what you're

talking about you went to the cour

houses and you were able to get these

lists and the by the way this is public

data this is public information right

when you owe money it's like the old

school days they would put your name up

on a big Post in the middle of town

right well now they just put you on a

list somewhere and that's the list that

Cody's talking about there is pre-

forclosure lists there is tax delinquent

you don't pay your property taxes list

there's code violations if you're not

taking care of the outside of the

property you're going to get code

violations from the city or the township

or or where wherever that's coming from

the um municipalities it doesn't matter

municipalities all that stuff right and

so uh these are all out there for us to

be able to go oh okay well I don't want

to go after every house every house is

not who I should be spending the

majority of my time with I should be

going after these homes that have their

hand raised to say hey I've got some

some signs of distress here is that

right Mark yeah that's my tick as well

Bren um these these list probate pre-

forclosure these are families that can

benefit from your services because

there's an event occurring there's

something an pinning event there's

there's a need for you know our services

to provide a solution for their property

to help them transition to the next

phase of their life and so uh we find

that um uh yeah by focusing on those

right lists it saves the right time and

energy and you can really focus on

families that can benefit from your

service so what would you send so

everybody listening to this that's like

oh my gosh I want to find the deal of a

lifetime and our our saying is the deal

of a lifetime comes around about once a

week right that's an old Dolph darus he

he wrote Rich uh Rich dad's uh book on

real estate riches way back in the early

2000s he would say the deal of a

lifetime comes around once a week right

it's on us to go and have the

conversations with the property owner

and make the offers so Mark if you were

to send out some mail and you do send

out mail what do you send and and what

is the process there to have people call

you when they're ready to sell their

house well I like direct mail for that

reason uh they they do call us right

that in that increases the probability

that they're ready to work with you if

they're making a call to you so that's

the first thing you have to have a

mindset that hey if they're calling me

they're probably some value I can

provide here uh we like to focus on

those those specialty lists like you

mentioned uh probate ition notice of

default absentee vacant anything where

the probability is increased right that

they can benefit from our services uh

and then it's just the process of being

extremely responsive and service-minded

to those that reach out and just uh

standing out when I started you know

about the same time as Cody in fact Cody

was the one that actually introduced um

the idea to me he was having some

traction I don't think he failed real uh

uh insurance but he realized that there

was a better way and he was willing to

share it with me and so you know 10

years ago he says hey you got to

consider this so I went and did my own

activities for a minute and then we

partnered up um and my only experience

sprent was you know sales I worked with

lots of families selling fencing and

decking products nothing to do with real

estate uh but that's not true actually

about three years before that I tried

and failed on on a on a rehab I couldn't

even sell it after I put enough money to

it so I had to I had to keep it as a

rental just to so I didn't lose money

because I couldn't afford to lose money

so my only option was to keep it as a

rental anyway fast forward coach and I

now been doing it for several years but

what I did take with me from my fencing

and decking days from the cells is that

a servants mind uh you know kind of a

part for the seller type mindset of

building a plan a solution being mindful

of them a servant mindset it just

translates well uh you know desire to

help them come up with a plan that will

help them transition in their life and

it's the most enjoyable aspect of it

providing meaningful value for the

people you're working with it's been fun

I love it so what what do we what do we

send them mark give us the give us the

nitty-gritty what we we get this list

and there's a million things that we

could send them do we send them a

handwritten note that says hey I want to

buy your house do we send them a

postcard do we send them a letter what

works to get people to call us when they

want to sell us there these houses that

need significant

Renovations uh the answer to that

question Brent is yes because you do it

all uh we've done it all in fact in the

early days we actually printed it them

ourselves put a stamp on them ourselves

and even occasionally would handw write

it but man you streamlined it as best as

you can yeah postcards at a default is

the the simplest action that one can

take and it's just a simple message we

like to have it as a handwritten as

you're looking for a tacal tactical

response to your question we like it

because it captures the eye when

somebody sees even though it's computer

generated handwritten it it just

captures the eye and it's just a simple

message hey would you consider an offer

on your property at a you know one two

three main street Ty by did and it's

just the idea that you you're getting

something in their hands to really

really just reach out to the people that

say raise their hand and say Yes i' I'd

consider something I'd like to learn

more about this opportunity this process

letters uh even uh very frequently um an

offer an actual check um that you can

send out to them so there's a lot of

different activities you can do but at a

minimum the answer is yes because a

handwritten a sticky note on their door

a postcard a letter they all work you

just have to be consistent uh with

them awesome Cody when you closed that

deal what did you make on your first

deal $24,000 I remember like it was

yesterday it was a big day how how did

that how did that feel how did it how

did your wife feel how did the family

feel I mean was that the turning point I

mean did you just go you know what this

is my life now I mean this th this is

the path that I want to go on I finally

found it because it took me a long time

to figure this out right do I be a real

estate agent do I uh flip houses do I

just start building a rental portfolio

you know do I and then I found then I

discovered what wholesaling is which is

essentially assigning a contract you're

you're not flipping a house you're

flipping the purchase agreement which we

can get into in just a bit because this

audience here uh may not know exactly

what that is but once you discovered

that you could go and flip a house that

you don't own and make

24,000 what happens in your brain no

well first and foremost you you pinch

yourself like you you you genuinely

pinch yourself you're like this is real

not only did it happen it happened for

Cody hoffine right uh you say this a lot

Brent and I've always loved it and I've

used it often you always say it turns

from Faith to fact right at that moment

when it turns into fact it's game over

at that point at least for me maybe it's

not everyone's mindset my mindset was

when it works for me oh let's double

down it's not let up it's not like go

celebrate it was let's double down like

let's have faith in the process like the

process works no more faith the fact is

the process works now I'm just going to

double down my efforts so I didn't

hesitate I took probably 15 of that

24,000 and I threw it right back into

marketing because I was like I just want

more deals like I don't want to just

slow roll this and do like two or three

grand a week or a month like let's let's

really ramp this baby up and I went to

like 15 grand like instantly and just

started doing that over the first month

and so I ramped up marketing really

quick because I believ the process um I

I think that's the first thing second of

all is just I was still imperfect taking

uh this action I wasn't an expert at

this point I mean I've done my first

deal I was far from it but if there's

anything I say I I'm I'm an expert at

it's failing my way forward I'm willing

to go out there and stumble my way

forward and we've talked about this our

whole entire careers together is how

important that actually plays a role

there's a point in time where when you

want to turn it into a business how you

need some processes and systems in place

but at the

beginning imperfect action trumps like

trumps systems and processes it eats it

for it eats it for lunch so it's just

getting out there and getting out of

your own way and I think for many

listening if you're listening to this

you're like what's my next move it's

just have enough information to take

your next step and don't attach yourself

to the how the more we attach oursel to

the how the more we're trying to build

out a perfect plans and Perfect Plans

don't exist you just need enough

information to take the next step and go

take that step are you going to do it

perfectly are you going to make mistakes

absolutely I sounded like an absolute

idiot on many manyo ointments but that

was my best coach even my mentor

couldn't have taught me what I taught

Myself by just stumbling through a bad

appointment so I that's one thing I've

committed to that I I if I say I'm an

expert at I'm an expert at committing to

to making a lot of mistakes because

those mistakes add up to be my best

coach which ends up being my my my way

of becoming the better version of myself

yeah our really really good friend Tom

croll has saying that that it's not

Education Plus plus action equals

results that's the wrong equation it is

the action plus the results is your

education equals the education and

that's really the biggest difference I

see in real estate being a real estate

entrepreneur finding the absolute best

deals that nobody else knows about it is

all that massive imperfect action and

going out there and letting that educate

you because you could read every book

you could go listen every podcast you

can watch every YouTube but until you're

face to face knee to knee belly to belly

with that seller and they're telling you

what they're looking for they're telling

you the perfect way for them to get out

of their situation there's nothing like

it there's nothing like you can't you

can't build a business based on Theory

you can't build a business based on

hallucinations you got to build a

business based on actually being in

front and having those conversations

with property owners and I'm telling you

we have we have been around people and

we have coached people for the last 10

years you and I both Cody

um that started with no money no

education no real estate background and

just started going out and knocking on

doors sending out little letters

reaching out to people they would just

literally go out into the streets in any

Street anybody could do this you could

go out in any Street and go find in any

neighborhood and go find the properties

that need some love they need renovation

they've been vacant the owners can't

take care of them anymore whatever it is

you can find those houses

that are just to put it bluntly ugly

ugly houses and you can go and you can

reach out to that property or have a

conversation make offers and if they're

ready to sell that property you're going

to find some unbelievable opportunities

so

Mark circling back real quick and then

we'll move on Direct Mail who do you

like is there a company that you like to

work with with that that sends it out

that has good templates because you're

like yeah just do a handwritten postcard

it's great well okay what does that mean

you know what I mean yeah and the truth

is Brent we work with a couple I mean

we've work with 3D mail yellow letters

um and a couple others and I think um at

the end of the day you're looking for

somebody that um has some good templates

and it's easy to work with um Justin

silvario has a great product um you know

as well and so really what's his company

name in it's inello yeah yeah inell

awesome so so they offer a great product

as well so uh hopefully our friends that

each of those places will receive a

little business now but uh at the end of

the day it just it is it's just taking

that action one thing if I could just um

compliment your guys' message there John

Maxwell talked Cody and I at event we

were recently at John Maxwell's written

80 leadership books just an inspiring

guy just lives a great life and just

really tries to bless people's lives

with leadership principles but he says

hey I'm GNA do he just talks about the

value of failure and how he's going to

do better than most people because he

he's gonna fail more than most but he

says it's this this concept of that you

shared uh with Tom K action plus results

equals your education he says a little

different but along the same lines it's

test fail learn improve and re-enter so

it's just how quickly can you

effectively mess up get the result and

then make the Improvement and do it

again uh that's the valuable of educ

value of education but that's a guy I'm

making a plug yeah please Cody I just

say just to like roll on what you're

saying because it's even more powerful

do people watch this or is this just

going to be like an audio

both like is it on video format too yep

because people see this what Mark just

said is valuable because it was like eye

opener when John did it he says te like

think of it as a circle you test you

learn or you test you fail you learn you

improve and you re-enter you test you

fail you learn you improve and you

re-enter so each time for those that

can't see what I'm doing as you re-enter

you're gaining traction you're You're

Building up you're improving you're

becoming 1% better and so that that that

was the big visual that he wanted he he

even made it so clear he's like no no no

put down your pencils look at me when I

do this and he did that whole thing then

reenter did the whole thing and then

re-enter he's like this is why I'm

better than most because I re-enter at a

faster Pace than everyone

else love it as the at at the time of

this recording we're approaching the new

year everybody's putting together their

goals for the next year every body's got

those stars in their eyes and the

electricity coming out of their their

fingers and the fire in their belly how

do we make sure that the next 12 months

is the best financial 12 months that

we've ever

had best TW uh so a financial plan for

the for the next 12 months to just knock

it out the

park uh well it's do you want me to take

a stab out of first year Cody sure

here's what we do with our our own

company and we just got off a call doing

this and it it was like it was a heated

call like we're trying to figure out our

own goals right I got heated up like I'm

my gosh here's what I'm trying to do but

I'm trying to figure this out right so

it's not a perfect well there's a

perfect science behind it but what's

beautiful is the conflict is is a great

thing so it is coming up with a year and

most people really overshoot what they

can do in a year but unders shoot what

they can do in like three to five we

hear that all the time and so it's

getting something that is smart and that

would be specific measurable uh

attainable and then relevant and then

time bound right so it's a smart goal

and we make sure that you do something

that that pushes you that stretches you

right the law of the rubber band like

John Maxwell says the rubber band is

only useful when it's stretched and

that's the same thing with us we're only

useful when we're stretched um so push

some goals that stretch you and then

break it down quarterly and so we like

to break ours down and and you can find

this in a in a format called EOS

entrepreneurs uh operating system and

that is you break them down in 90 in

quarterlies right so you break them down

in your quarters and then you set your

goals they would call them rocks you set

your goals on what's going to happen as

a company and then with those goals the

company goals you're going to break it

down to individual goals who's going to

hold what and to be able to what what

everyone needs to do so that these these

company goals get hit for the 90 days um

so we were just on a call literally

right before we push play here we were

getting off our hour and a half meeting

our 90 minute meeting with our level 10

going over specifically this to end the

quarter strong but then start next year

um and it's it's just making sure you're

always moving the needle and it's making

sure that you're always um they call IDs

identify discuss and the solutions it's

identifying the right problems to even

have a goal set around so sometimes if

you're like you might set some wrong

goals you might say hey you know what uh

we need more deals so we just need more

marketing well if you don't really spend

some time really in that idea like going

through that you may be solving the

wrong problem so it's making sure we're

always solving the right problem and not

just because it may not be that you

don't need marketing it may be that how

you manage your lead and we may want to

talk about this on the show it's when

those leads come in that we're managing

those leads well that can also increase

our income and more times we think more

just more marketing more marketing

that's going to make all the difference

and it's going to make us more money and

it's usually less about adding more as

much as um measuring your current your

current data and just finding ways

within your management of your lead that

can increase that so I don't I hope I

gave an something that made sense there

but the whole point is break it down in

90 days give every give your your

company rocks what you're going to

accomplish over the 90 days have

individual rocks or individual goals

that each of you are going to attack and

then make sure you're always solving the

right problem and not just creating or

making solutions for problems that don't

even exist it may not be a marketing

problem it's probably a management of a

lead

problem I would only add to that Cody uh

when you do reverse engineered in that

way to identify the daily tasks that you

have to do that are going to effectively

get you to the monthly the quarterly the

yearly Target that you're trying to hit

and and you reengineer it that way or

reverse engineer it that way so that

you're daily task are the leading

activities that if they're done

consistently will give you the results

that you want at the end and so the five

non you know like the nonn the daily

non-negotiables that you have to execute

on religiously uh for us we really push

hard with our franchises that they're

talking to new sellers every single day

so depending on the market whatever but

is is it five is it 10 new sellers so if

you're coming through your pipeline

that's not a new seller uh talking with

Buyers so adding to your relationships

with your buyers list all right is that

five is that 10 is that 50 that you have

to call a day but the non-negotiables

are I'm talking to sellers every day I'm

talking to buyers every day uh am I

going on five at a minimum five

appointments a week so those first two

activities should get you on more uh

appointments right um how many pages of

personal development because listen if

you're not invested in personal

development which includes uh you know

all aspects the people you surround

yourself with what you ingest what what

uh you know is rubbing off on you type

activities and and then intentionally

what you're bringing in uh to get your

mind right uh so is it your daily

non-negotiable of five pages a personal

development reading or um you know five

minutes of meditation in the morning and

evening you've got to establish your

non-negotiables every day because those

are the leading activities that will

afford you the lagging results which are

you know the the contracts the revenue

the

success put that down a lot better my

friend compliment I would

my

answer it actually complemented the big

picture that you started with 12 months

reverse engineering and then it those

daily habit it really is so so let's

look at this past year for you guys how

how how was business in 2024 did you

guys hit your goals did you guys when

when you look back and reflect back

right because we can do this now when

you're looking back did you hit them and

what were those goals and what really

surprised you this year because you guys

do multiple millions in income every

year that's I probably should have

opened with that that probably would

have grabbed more people to really

listen to this because you guys really

are doing amazing things in in a couple

different markets but mostly you're

based at a Salt Lake and very

competitive market there's a lot of

regulations in real estate there they're

very tight with the ways that you have

to do things so you have to everything

is is very specific and ordered and it's

not like the wild west like in some

other areas so it's one of the toughest

markets and you guys are really you guys

have risen to the top over the last few

years so what did this year shake out

income wise yeah great question so

actually let me rewind to the we came up

with a plan about this time right the

fall the the winter of 2023 we're

looking what do we want to accomplish in

24 we actually determined uh Brent that

we wanted to we weren't so much worried

about Topline Revenue as we were

determined this year more than any other

year we wanted to improve our prodct

profitability so we actually dissected

the entire 2023 and all the results and

we determined that there was really two

major functions that produced most of

the revenue for us our marketing

channels which was PPC and um very

targeted direct mail so uh those were

the two biggest but we understood that

we also want to have a proactive

Outreach so we kept the cold calling

going but again just a targeted list at

a lower volume and our whole Focus was

we want to create more with less as it

relates the markting so very

specifically are we on target to hit our

goal we got to finish this month strong

but what's most impressive is it's not

our biggest Topline Revenue Year yes our

Target is several million every year but

our profitability is very healthy so

we're encouraged by what we're bringing

in relative to what we're spending we

realize we want to do it with less

Personnel we want our labor efficiency

to be super attractive and we want our

ratio of return relative to our expenses

to be attractive as well and that's what

we focused on this year so that we're

actually doing less activities and it's

been uh rewarding yes uh we've got a

heavy lift the next uh two and a half

weeks here but we're encouraged by the

results we've had this year so what's

Top Line so we'll do over two um just in

Utah and then we'll million yeah yeah so

how many deal how many deals is that

guys uh probably the least amount we've

ever done they're just more profitable

deals so I think we're now under a 100

we used to do over a hundred to do the

same Revenue we're now doing under a

hundred deals to get over two million

just in Salt Lake City love it and

that's because you guys are doing more

flips than

Wholesales great question yes the yes go

for it go for it Mark and and chime in

anytime Cody but yes we just are really

sensitive to how do we extract as much

revenue from every deal so wholesaling

is still a practice that we do virtually

on every or or we go through the motions

of wholesale virtually on every

transaction so we'll send it out to our

buyers because for the right offer we're

to assign anything right if we can get

about 80 75 to 80% of what we'd make

otherwise we're going to assign it which

sometimes the market affords that when

buyers are buying sometimes you just get

crazy offers from the buyer pool and it

just doesn't make sense to rehab it

because you're making 75 80% of what

You' make after you rehab it yourself

today's Market's a little different so

it abs and flows to answer your question

friend there's times where it's heavier

flip and there's times it's heavier

wholesale and we're just sensitive to

how much what can we methodically do on

the exit strategy to be very

calculated in our exit so we're

optimizing revenue on every single

transaction love it so just just for

anybody that doesn't know whenever

you're looking at an opportunity there's

really three buckets there's really

three exit strategies that we talk about

there's a Buy and Hold this is where you

buy it and you put it into your

portfolio and you keep it as a rental

there's the buy and flip which is like

HG TV shows you take a a house that's

run down and ugly and you have demo and

then you have the design and then it

looks beautiful and then you just sell

it on the open market and then you have

the ability to assign your interest in a

purchase agreement essentially when you

uh put together a purchase agreement

between a homeowner and yourself they're

the seller you're the buyer you can then

reach out to other investors in your

area and see if they want to buy that

opportunity from you which means that

you would scratch out your name as the

buyer put their name in and they

typically pay you a fee anywhere from 10

to 25 to

$50,000 depending on the deal for the

right to be able to buy that property to

either keep in their portfolio or to

flip and that's what Mark's talking

about when he's talking about reaching

out to the buyers and taking every

single deal that comes across their desk

and putting it out to the buyers to see

what they would be willing to pay for

them not to have to do the remodel

themselves but when you do the remodel

yourselves and the Market's not crashing

and you can get in and get out of that

property within you know 3 to six month

window the the spreads on those are what

50k

75,000 100,000 what's your guys average

deal size for your flips yeah they have

to be uh you have to Target in my mind

you've got to make no less than about

three times what you uh uh well a

simpler way to say it let me tie it back

into marketing actually BR you really

should be targeting a three to four to

5x on your marketing dollar well in Utah

it's crazy competitive so if I'm

spending you know 8 to $10,000 just to

get one deal I've got to make 40,000 on

average on my Revenue so if I'm

assigning things for less than that I've

got to bring the average up by doing

rehabs right so that I'm settling on

that number but we've been fortunate at

times where we're we're approaching six

figures uh as an average on on our flips

you know I can't really promote that

because there's a lot that goes into

that we're we're very seasoned um and uh

we do exceptional well here's the fact

what let's talk about all the factors

that go into getting a sixf figureure

flip it's not just being lucky I mean

you got to manage your leads

exceptionally well first off but I even

skipped the step already you have to be

good and consistent at your marketing

then you have to manage your leads

exceptionally well then there's the

acquisition process it's building a

strong enough plan for sellers that when

you're negotiating a price they sense

the value that you're offering in that

you get the property at a great price

and then you're not done now you have to

execute it I level you have to see the

vision for the property sure some of

them you're going to sign others in

order to get anywhere near a six fig on

a flip you just have to execute at a

very high level and sometimes one of the

things we're doing right now this take a

note on this if you're listening we're

adding a a walk out and a kitchen in

virtually every home now because with

interest rates high and purchase price

highs particularly in a very competitive

market like um Utah and not everybody

has basements but that's the model in

our Market because now I've got a bigger

buyer pool and they can afford to pay a

little bit more because they're like

well I'll put Mom in the basement or

I'll put a renter in the basement and

they can afford the interest rate in the

payment uh because of the higher price

so there's these subtleties and that you

learn over time and that what is what

affords us to really stretch the value

on a re-ups but it's all those um

components that equal the six figure

it's not just you luck into a deal it's

all the activities that compound to help

you execute and optimize Revenue well we

make our money when we buy yes right

Gotta Buy right so so under

understanding the understanding the

numbers understanding the cost per

square foot I mean whenever I look at a

deal that is under I would say 450

500,000 once it's fixed up I'm anywhere

from $35 to $40 a square foot is the

estimate that I have for cosmetic right

countertops uh cabinets fixtures

flooring uh paint carpet the uh the

baseboards all that stuff is appliances

typically it's 35 to 40 ,000 and then

I'll add 10,000 on top for any major

items right the plumbing maybe it has

mold issues maybe the roof needs to be

done maybe the pool needs resurfacing

these type of things it needs a new

boiler whatever it is depending on what

part of the country you're in and so you

don't have to really when when you're

looking at an opportunity you can use

those numbers $ 35 to $40 a square foot

plus 10,000 for major items to to put

together an estimate on how much it'll

cost to rehab that property do you guys

agree with that yes great yeah that's

the model that works uh and when you get

really good you find contractors and

things you can keep that cost down and

you start to assess it but you're right

if you want to be um that's a very

strategic way to assess a rehab to keep

yourself out of trouble the problem is

is people say I should be able to get

this done for 20 $25 a square foot they

don't account the extra 10,000 and then

they're disappointed in the end or they

break even or they're bringing money to

the closing table yeah what what do you

think going forward the next uh couple C

years or at least the next year as we're

going forward here um are are we going

up are we flat are we going down what do

you think because this really affects

whether or not to flip properties in my

opinion my opinion if the markets flat

or going up go bananas raise the funds

get the contractors do it right it's

when like in 2022 when interest rates

skyrocketed from what they were for like

a decade that we saw some really really

big problems with the flippers I mean a

lot of flippers lost a lot of money and

that happens anytime that you've got

inflation anytime that you've got

interest rates that have really you know

get get hiked up are you seeing any of

that are you thinking it's going to be

flat up down what do you think this is a

phenomenal question I want to attack

because I feel no different than when I

go into a home let me give you the

chocolate cover broccoli real quick that

is no one wants the broccoli they want

the chocolate so we got to give them

both right you got to give them the

chocolate C broccoli because sometimes

you got to give people what they need

why is it that you're able to go into an

appointment and get a contract why is it

that we're able to go an appointment and

get a contract it's because there is

this confidence level people aren't

looking for just the best offer and I

think so many times we think oh we just

got to be the best offer and people are

going to go with you if that's all you

have to offer that's all you have to

offer but there's many times we're not

the highest offer and we are getting

contracts because we provide the most

confidence we're going to actually

fulfill what we said we're going to do I

think now to tie us back into your

question what's going on is it Rising is

it flat there's a new confidence this is

not a right or a left conversation right

now this is just going off of the

feeling that I'm feeling right now and

there is a higher level of confidence

going on right now in the economy that

makes me say it's going up now there's

things that can change Always I've

always been the guy that's like marry

the home and date the rate meaning rates

always change but people that have been

sitting on the sidelines right now

saying ah I can't buy we got 7% interest

rates no now's the time for me in my

mind no you buy because if those

interest rates go down these prices

actually go up and so let's buy it why

it's low and then date the rate because

the rate's going to change and just

refinance and now you got the home at a

low price and you get to refinance at a

lower interest rate come here in the

future there is a confidence going on so

again not going political but there is

an absolute confidence going on in the

economy right now what's going to happen

over the next few years or at least this

next year and and I'm seeing a lot of

things happening I'm seeing a lot of of

uh interested parties getting back into

real estate I'm seeing a lot of cash

buyers get back in the game saying hey

it's our time to go because they know

what's going to happen over these next

few years I think it's going to be

nothing but powerful going on nothing

but

great I I anticipate in the spring uh

beginning of year it's going to have an

it's it's gonna bump up and things going

be good there's a couple things I look

at I almost go to this uh to the

definitive statement of Brent I actually

don't care and here's what I mean by

that if I just do what I do well and I'm

consistent at it I almost don't care um

because in our space there's always

people that can benefit from the

services we provide I in fact I don't do

this often I just happened to go on

appointment this last Saturday just just

two days ago go family I didn't know

this hey I had to shake off the dust I

had to meet with a great family they

ultimately needed a solution because

their home they just don't have a the

Surplus they need to get it fixed up but

they're excited to make a transition

move to another home they're coming

together as a family a mom and uh

daughter and son they're building

they're buying another home together but

their home is is you know 40 p 40 years

and a lot of work um um from being you

know able to sell type thing mold and

and some issues like that so anyway if

I'm positioning myself to provide

meaningful value and service to families

I'm in a home like that whether the

Market's going up or down okay so now

how is it relevant if there's higher

interest rates in Market well yeah I

have to buy right I have to be

conservative as to the numbers I put

under contract um but at the end of the

day I can't control those things so I

almost put zero energy towards what the

Market's doing and I just provide

meaningful value and service I go find

families that can benefit from the

service I'm providing I'm consistent

with my marketing I manage my leads well

and at the end of the day I'm going to

execute regardless of what the Market's

doing and I focus on homes here's maybe

the other rule I focus on homes that are

medium price range and below and if I

stick with that and I get buy right and

I and I I'm conservative with my my

purchase price I'm going to be okay and

I'm going to provide meaningful value

and service and the Market's going to do

what it's going to do and sometimes yes

I'll kill it because the market does

better

but other times it won't but I'm not

going to lose money because I bought

right and I executed and I provided

service and value to the families I'm

meeting with I love it guys I am a Joe

home buyer

franchisee uh Joe home buyer has been

phenomenal what when did I start 2019

it's been five years do I get a

five-year anniversary for that I hope so

one of the you were one of the first

early doctors baby well first of all I

think I think brand local brand is

really important and this is for anybody

that you know once you're once you're

starting to build your business and and

you're bringing people onto your team

and you you cross that million dollar

threshold you cross that

$750,000 threshold I think it's really

important to have an asset and most

people won't buy your real estate

business they just won't but if you buy

a franchise and there's only a certain

amount of franchises that can happen in

each market that's something that over

time is a real asset so that's what

that's what I saw going into it and also

just the training I mean I send all my

acquisition managers to to Utah you guys

train them all uh we have weekly

meetings with you guys you guys do

phenomenal with you know testing out all

the different marketing channels and So

for anybody that's around the country

that's interested in having a business

in a box but but also having the support

of real operators that are doing it um

and it's not this big corporate weird

thing like some of these other fr

franchises I would I would highly

suggest you look into Joe home buyer it

is it has been an unbelievable I mean my

business has absolutely I think tripled

at this point as of this year since

joining and so it's it's been a huge

Advantage for us we all my guys wear

these polos when they go out on there my

my commercials on TV that we spend

whatever4 $50,000 a month on right now

and we'll continue to we're all Joe home

buyer and it's funny people think my

name is Joe

right when they see me or whatever else

out in the streets I'm recognized

because of the TV commercials and

they're like Joe it's really interesting

guys and so if you if you've ever

thought about that make sure you go

where did they go just to Joe home

buyer.com yeah Jo home buer

franchising.com uh you can also follow

us on Instagram and uh yeah would love

to franchising hey guys the the the the

the meetups are fantastic getting

together and collaborating it's not

something that you know listen some of

these m masterminds you spend 10 20 30

$50,000 to be a part of uh this is way

more value than anything like that so um

if if you're in a position and you're

interested in buying an actual

incredible brand that is really just

just growing up only five six years old

and really building some momentum I

highly suggest you guys look into Joe

home buyer franchise just Google it and

check that out Cody Mark thanks for

being on here

it's always an honor and thank you for

those kind words that means the world

but you are your crew is a fantastic

crew to work with they are the most Co

coachable humble people which is why

they're tripling the revenue because

they they don't just listen they listen

they go apply and they go do it listen

we're gonna do two 2.5 million here in

Phoenix you know we're we're we're we're

pushing to hit 2.5 the hardest markets

in the in in the gross income and then

uh you know obviously the net is around

uh 30 40% % there it just depends on how

this shakes out but it's been fantastic

and you know you guys you guys uh put

together all the systems I just uh pick

the people and make sure that we have

enough marketing going out and and

Life's good so uh definitely check it

out guys Joe home buyer franchising and

that is it for our show um we talked a

lot of stuff we talked about Direct Mail

we talked about flipping versus

wholesaling if you're really interested

in deep diving what wholesaling is go to

richdad and brent.com richdad and

brent.com we have a presentation that's

45 minutes an hour and that'll really

opened your eyes to what that means and

the potential there and it's actually

something that Robert kosaki talks about

in chapter five of Rich Dad Poor Dad

which I didn't see the first 10 times I

read the book but then finally didn't it

changed my life forever so definitely

check that out at richdad and brent.com

and that's it guys I love you guys I

want you to go out there and have

conversations make offers and talk to

people till next time see you guys this

podcast is a presentation of Rich Dad

media Network